Global Cloud Kitchen Market (2021 to 2026) – Low Risk and Low Capital Requirements Drive Growth –


DUBLIN–(BUSINESS WIRE)–The “Cloud Kitchen Market – Forecast 2021 to 2026” report has been added to from offer.

Cloud Kitchens Market was valued at US$32.460 Billion in 2019 and is expected to grow at a CAGR of 12.28% during the forecast period to reach a market size of US$73.024 Billion by 2026 .

A cloud kitchen, also known as a Ghost Kitchen, is a place where food is prepared and delivered to customers’ doorsteps by taking orders over the phone or through online ordering systems. They mainly do not provide catering services. They are primarily involved in food preparation and delivery or have partnerships with food ordering websites such as Swiggy, Zomato, Dine Out and others.

Cloud kitchens are designed for speed, efficiency, and scale, making it simple to operate a delivery restaurant with little risk and investment. They allow an entrepreneur to collaborate with many brands from a single location, increasing the chances of improving cost management in the existing infrastructure. It also offers greater flexibility. Cloud kitchens can continually review what they provide by evaluating what works and what doesn’t. All of this translates into lower costs, increased efficiency and reduced risk.

However, with each consecutive shutdown, there has been a significant increase in the number of cloud kitchens. Many home businesses and cloud kitchens have launched and registered as food aggregators, increasing the competition in the market. Due to the lack of a physical storefront, it is difficult to cultivate a loyal and regular fan base for the brand. The curator’s goal of providing a boxed experience is also a hindrance because it depends not only on the packaging but also on the care with which the food is delivered.


Low risk and low capital requirements

The most important benefit of the cloud kitchen model is the elimination of costs such as dining space, ambience, furniture, expensive silverware, electrical appliances, etc. All are eliminated, leaving only minimal expenses for culinary staff, kitchen supplies, cooking equipment, and some maintenance expenses such as utility bills. Cloud kitchens can easily invest in new menus and ingredients using their resources efficiently.

Restaurant owners and operators can change their menu ingredients, set competitive prices, and run their business much more efficiently if they use real-time consumer data. Cloud kitchens also allow customers to order from anywhere at any time. According to the National Restaurant Association’s 2020 Consumer Trends, 52% of diners believe that ordering takeout or delivery is essential to their lifestyle.


A strong influx of cloud kitchens

The pandemic has led to an increase in the number of cloud kitchens. Especially after a nationwide lockout and layoffs, the number of home businesses and cloud kitchens has increased as it is one of the most profitable ways to generate profits in the industry. food.

However, this created the major problem of keeping costs down while trying to establish a presence in a relatively crowded market. The majority of customers are so price-sensitive that loyalty takes a back seat. It is necessary to get the best deal which increases price competition. This in turn triggers a loop of offering more and more discounts in order to attract customers.

Key developments:

  • Franklin Junction partnered with EAT in May 2021 to target the MENA region for global expansion. The collaboration will allow current kitchens in the MENA region to become Franklin Junction Host Kitchens, and restaurant brands based in the MENA region or the United States to establish global reach through the relationship.

  • Mad Grass, a Jakarta-based startup, opened the world’s first collaborative vegan dining and cloud kitchen space in September 2021.

  • CloudKitchens, a shared kitchen company launched in 2015 and backed by Uber co-founder Travis Kalanick, was slated to launch in Brazil in the first half of 2020. Earlier that year, the Saudi sovereign wealth fund granted the $400 million business.

Companies cited

  • KLC Virtual Restaurants

  • The Food Corridor (Fort Collins, CO)

  • Kitopi

  • CloudKitchen

  • Muy

  • Imitate

  • Franklin Junction

  • Zulu

  • Virturing

  • Keatz

  • Travis Kalanick

  • Karmic cooking

  • Deliveroo

Market segmentation :

By business model

  • Autonomous cloud kitchen

  • Multi-brand Cloud Kitchen

  • Commissioner’s kitchen (aggregator)

  • Outsourced cloud kitchen

  • Coworking cloud kitchen

By order source

  • Customer call

  • Delivery app

  • The cabinet app

  • Aggregate app

By geography

  • North America

  • United States

  • Canada

  • Mexico

  • South America

  • Brazil

  • Argentina

  • Others

  • Europe

  • Germany

  • France

  • UK

  • Spain

  • Others

  • Middle East and Africa

  • Saudi Arabia

  • United Arab Emirates

  • Israel

  • Others

  • Asia Pacific

  • China

  • India

  • South Korea

  • Taiwan

  • Thailand

  • Indonesia

  • Japan

  • Others

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